Credit Card Fees

The ultimate aim in managing your credit card is to avoid ever having to pay credit card fees. Follow our tips and guides to help ensure your credit card transactions are free free.

Credit card fees and charges are responsible for a lot of consumer aggravation. More and more people are feeling ripped of when they suddenly see some fees they never knew existed on theircredit card statement and the more you learn about them, the better you can protect against the possibility of attracting them yourself.

Featured No Annual Fee Credit Card

Avoid ever having to pay credit card fees with the HSBC Credit Card which features a $0 annual fee for the life of the card. You can also pay off any existing balances with an interest free balance transfer offer for the first 6 months. Finally with up to 55 days interest free on purchases you will never have to pay any fees provided you pay your balance in full each month.

• $0 annual fee
• 16.99% p.a. on purchases
• 0% p.a. for 6 months on balance transfers
• Cash Advance Rate of 20.75%
• Access to the Home & Away Privilege Program which gives you instant discounts on shopping, travel, accommodation and plenty more

Click here to read the HSBC Credit Card terms and conditions

How you can stay clear of credit card fees and charges.

The cost is staggering. Some $30 billion a year are billed to the accounts of credit card holders in extra fees and charges most people don't know these even exist. Since we are using credit cards for just about any shopping we do, it is becoming more important than ever to use them smartly to your advantage.

As the cost of debt increases everywhere, we too have to fork out more money for our personal debt. We do this by paying increased credit card fees, often hidden in the fine print of a credit card terms contract.

The more you understand about these potential pitfalls, the wiser you can be in managing your card and its associated costs. The following tips will level the field and help you to see the bigger picture. It is a round-up of the most common credit card fees:

Over the limit fee:

The over the limit fee is a silent killer. It's easy to spend more money on your card than allowed. All you need is a holiday purchase or some expensive household item like an LCD TV and you are in danger of going over the allowed limit.

It pays to keep an eye on your spending if you always get trapped with this fee. Another tips is to pay off your credit card in full each month. With Internet banking access there should be no excuse not knowing where exactly you are at with your current card balance. However, since online banking often shows you a delayed account status it would be wise to call your bank if you want to know the exact state of your balance.

Late fee:

Late fees sting consumers a lot and they come dearly. You could be expected to fork out between $25 - $50 if you are lagging behind with your credit card payment. For card holders with several cards this means even more trouble as paying late on the one card will affect your other cards in a snowball motion.

Plus, the card company can actually sting you double for being late by increasing your 'fine.'
Use a diary and mark the payment date each month in big fat red. Even better, pay your card with direct debit to automate the process and never needing to worry of being late.

Cash advance fee:

If you can avoid taking out cash with your credit card, then do so. Cash advance fees are very expensive. If you use an ATM, then more charges are being added to your account for using the system. Unless it's an absolute emergency you shouldn't use this feature at all.

Monthly service fee:

Even a no-annual fee credit card could attract monthly service charges. Usually they range around $5 per account, but can be higher and add up during the year.

Currency exchange fee:

Do you travel overseas a lot? Or are you a frequent online shopper with overseas merchants. If so, keep an eye on your currency exchange fees. Some companies charge you 3 per cent extra in fees. It pays to use the local currency when you make these payments and you should check these charges before having an unwelcome surprise on your account.

Balance transfer fee:

Even if you get a fee-free balance transfer honeymoon period you could be made to pay fees for transferring your balance to a new balance transfer credit card. Depending on the company you're with this could relate to a percentage of the amount you transfer or a set fee.

Merchant surcharge fee:

Many merchants relate some of their costs onto you. Telstra is a classical example. Their credit card surcharge payment fees increase by September the 14th. for credit card payments made on accounts and you need to be aware of these.Merchant surcharge fees can add a lot to your bottom line.

The best way to manage your credit card fees:

The best way to manage your credit card fees is by understanding them and choosing the right card for your circumstances. Always read the small print of credit card terms and if in doubt, speak with your lender and ask questions.

ASIC provide some great tips on avoiding credit card fees from merchants including:

• Pay by EFTPOS instead of credit card if this avoids the fee
• Check with credit card merchant provider (VISA, MasterCard, American Express or Diners Club) charges the lowest fee and pay with that card
• Look at the bills you pay regularly via credit card. If the merchant charges a credit card fee you may be better off having that bill paid from your savings transaction account.

We have written a number of articles covering the topic of Credit Card Fees educating you on action you can take to reduce the amount of fees charged to your card.

• Save On Card Fees With A Balance Transfer Card
  

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• Use Your Credit Card To Avoid ATM Fees
  

  Banks make an astounding amount of profit from ATM fees. You can avoid some of these costs by using your credit card instead of withdrawing cash for a fee. Whilst the government is trying to regulate bank fees, you must also take the necessary steps to protect your finances.



• Credit Card Fees and how to avoid them
  

  Many people are doing online shopping nowadays and credit cards are becoming increasingly more popular, but with this increase in spending also comes an increase in credit card fees. If you want to learn how to avoid these fees than take a look at this article.



• How To Cut Back Your Banking Charges And Fees
  

  If you are looking for ways you can cut your banking charges then read this article for more information. You can skim a lot of money off of your charges by following a few simple tips.



• Credit Card Costs
  

  Credit cards are very easy to use and convenient. However, without taking into consideration credit card costs, you could very easily find yourself on the wrong side of a hefty bill. Here’s how you can keep your costs to a minimum.



• Credit Card Costs: How Much Do Credit Cards Cost?
  

  Many of us can become swamped in credit card fees and charges if we do not pay off our balance in full each month. This increases the cost of owning a credit card but can be avoided. Here are some tips on how to lower your credit card costs.



• Credit Card Interest Rates
  

  Owning a credit card is one thing but using it responsibility by paying off your balance on time every month is another. To help you achieve this we explain how interest rates are calculated and charged to your statement.



• Credit Card Interest Repayments – How Much Should You Repay Each Month?
  

  Not understanding exactly how credit card interest repayments work or how to calculate your interest payments can contribute to credit card debt. In order to budget and plan to pay off your interest repayments in full each month you need to understand this key information.



• How To Negotiate A Better Credit Card Deal With Your Bank For The New Year
  

  Many people simply accept what the bank has to offer on their credit card not knowing that as a customer you can actually negotiate a better deal. Here are all the subtle ways on how to approach the bank for a better credit card deal.



• How To Lower My Credit Card Payments
  

  One of the biggest concerns when choosing between different credit cards is the amount of interest you are charged every single month. If you are someone who doesn’t pay off your credit card debt in full every month then this article will help you assess your current credit card payments and may help you consider switching to a different credit card provider in order to save.



• How to avoid paying bank penalty fees
  

  Bank penalty fees can be costly if you don’t manage your finances correctly. Read this guide to understand how you can avoid paying a



• Qantas Hiding It’s Credit Card Fees
  

  When Qantas came into the media spotlight it was because of their great prices. In fact, consumers where extremely upset with the airline carrier for something they didn’t do – they failed to correctly display their credit card fees to consumers.



• How Do Foreign Service Fees Affect Use-Abroad Credit Cards?
  

  How Do Foreign Service Fees Affect Use-Abroad Credit Cards?

  Foreign service fees could strike you with a nasty surprise after you’ve returned home from your dream holiday. While you are about in the sun you probably neglect to think about money, as long as it is available to you via your card. Don’t fall for the common holiday money traps, learn how.



• I Had To Pay A Fee While Using My Credit Card For Gambling – Why?
  

  Cash advance credit cards can cost you a lot more than you think, especially when you tend to pay for your gambling habits. Learn how to take advantage of this type of credit card and save money in the process.



• How To Minimise Your Credit Card Fees
  

  Credit card fees can really ad up if you don’t pay attention and use your card how it should be used. Read our guide to minimising the amount of fees you have to pay with your credit card.



• How To Minimise Your Credit Card Fees & Charges
  

  Many individuals sign-up for a new credit card, without fully understanding the fees and charges associated with the credit card they have applied for. Read our guide to give you an understanding on the types of credit card fees and charges to avoid.



• How To Avoid Foreign ATM Fees – The Dreaded $2 ATM Fee
  

  One way to save significant amounts of cash is to avoid foreign ATM fees. You should try to only use ATM’s in your network. Check by phone or SMS to get the location of you’re nearest bank branch or ask them for a free way to withdraw cash while abroad.



• Guide To Reducing Your Bank Fees
  

  Just about every bank account in Australia will have fees associated with it. Bank fees are one of the ways a bank can generate revenue from a customer. What can you do to avoid bank fees with your savings account? Follow this guide to bank fees in Australia for more information.



• Avoid Paying Credit Card Fees
  

  By owning a credit card you don’t automatically have to pay fees. Some credit cards offer a no annual fee introductory offer, and besides annual fees, if you manage your credit card correctly, you can actually reduce your credit card debt by avoiding some of the



• How to Avoid Credit Card Merchant Fees
  

  Why do we get punished for using our credit cards as a form of purchase from some retailers? Are credit card surcharges necessary?

  
  

  Find out why credit card surcharges exist and what you can do to avoid (or at least limit) them.





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Editor's Choice: Our Top Credit Cards




Credit Card	Card Details	Interest Rate (p.a.)	Cash Advance Rate (p.a.)	Balance Transfer Rate (p.a.)	Annual fee	Interest free days (up to)
HSBC Credit Card	Editor's Choice: 0% for 6 months Balance Transfer & No Annual Fee Featuring a $0 annual fee for life, and 0% p.a. balance transfer for 6 months, the HSBC Credit Card was voted the Best Transactor Credit Card for 2010.	16.99%	20.75%	0% for 6 months	$0	55
Suncorp Clear Options Standard Visa Card	A great 12 month balance transfer offer, combined with a low annual fee and a good interest rate on purchases.	12.24%	17.99%	1.9% for 12 months	$39	0